Waiting for Separation Pay: Is There a Legal Time Limit for Employers?

Jillian Harriet
Hello everyone! I would just like to ask if there is such a law, procedure, or guideline that states the maximum processing time for releasing a resigned employee's separation pay. It's been four months since I resigned from my previous work, but I still haven't received my separation pay. According to my previous employer, the separation pay is still in process. They are just waiting for a file that would note some deductions. Given that, shouldn't they have done something about it? Is that legal?

Would really appreciate your reply. Thank you.

Regards,
Jillian
Jillian Harriet
Hello everyone! I would just like to ask if there is such a law, procedure, or guideline that states the maximum processing time for releasing a resigned employee's separation pay. It's been four months since I resigned from my previous work, but I still haven't received my separation pay. According to my previous employer, the separation pay is still in process. They are just waiting for a file that would note some deductions. Given that, shouldn't they have done something about it? Is that legal? Would really appreciate your reply.

Thank you.
Regards.
industrialhr
In case an employee resigns, the full and final settlement should be given on the next payday. For example, if X resigns on August 15th and payday is the 1st of every month, then the FNF settlement day will be September 1st.

In the event of the company terminating an employee, the settlement should be provided the next day.

Thank you.
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